OPENLANE, Inc. (OPLN) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA above its 5-year median

Openlane's EV/EBITDA of 13.4 is above its 5-year median of 9.9.

P/B above the industry

Openlane's price-to-book of 2.74 is above the Retail-auto dealers & gasoline stations median of 2.37.

Trading above fair value

The share price of $35.23 is above our fair value estimate of $22.98.

Margin of safety under 20%

The price is 53.3% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 8.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings growth not accelerating

Net income grew 15.8% over the last twelve months, against a 5-year average of 224% a year.

Growing faster than the industry

Revenue grew 12.8% over the last twelve months; the Retail-auto dealers & gasoline stations median is 1.5%.

Guidance raised

Openlane raised its 2026 Net income ( in millions ) outlook on Aug 4, 2026.

Gross margin slipping

Gross margin was 45.6% over the last twelve months, against 46.7% a year earlier.

Return on equity under 15%

Return on equity was 13.1% over the last twelve months and averaged 6.3% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 14.4%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Openlane's return on equity of 13.1% is above the Retail-auto dealers & gasoline stations median of 12.4%.

Earnings grew over 5 years

Net income grew 224% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 9.2% over the last twelve months, against a 5-year average of 5.3%.

Net margin above the industry

Openlane's net margin of 9.2% is above the Retail-auto dealers & gasoline stations median of 2.6%.

Low debt

Debt is 33.9% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 116% five years ago to 33.9%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 81.4% of total debt.

Interest well covered

Operating income covers interest expense 6.4 times.

Short-term assets cover short-term debts

Current assets are 1.16 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.59; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Openlane has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.